There’s nothing like being a Grandparent. Asa grandparent, you want the very best for your grandchildren—and that includes wanting to provide them with some financial security and perhaps even the beginnings of an investment portfolio. Purchasing a permanent life insurance policy for your grandchild can be part of that plan. In addition, the whole process can be simple and seamless. You won’t even need a health exam or waiver.
Which Type of Life Insurance Policy Should You Purchase?
Let’s start by looking at what type of life insurance policy is best for gifting to a grandchild. You will want to consider a permanent whole life policy, as it will provide the best return on investment for you and your grandchild. A whole life policy will accumulate cash value throughout its lifetime—a distinct benefit for your grandchild when they reach adulthood and take over ownership of the policy—and the rates, premiums, and coverage won’t change over the lifetime of the policy. Term life insurance isn’t even available for children under age 18, since it wouldn’t be their best option.
What Does The Policy Purchasing Process Involve?
Purchasing life insurance for your grandchild really couldn’t be any easier. If you are a parent, grandparent, great-grandparent, step-parent, or legal guardian, you are eligible to insure the life of a child without any further permissions. At any point after the child’s birth, a policy may be purchased, and it’s possible to lock in the premium rates at that point so that they will not increase over the lifetime of the policy. The younger the child is at the purchase of the policy, the better premiums you’ll be able to access. The purchasing adult is financially responsible for the upkeep of the policy until the covered child reaches the age of 18, retains ownership of the policy, and begins paying the premiums themselves.
Why Should I Buy Life Insurance For My Grandchild?
A life insurance policy can provide a layer of financial security for your grandchild as they launch into adulthood, through the accumulated cash value of the policy. This cash value would be available to them to borrow against, without tax penalty, to cover school loans, or general life expenses.
Additionally, locking in coverage at a young age can ensure that your grandchild never lacks adequate coverage no matter what health concerns may develop over their lifetime. Plus, a permanent whole life insurance policy will cover any end-of-life expense, and help ease financial hardships on the family in the event of their untimely death.
Life Insurance: A Financial Legacy For Your Grandchild
Financial success is only a part of the legacy you can build for your grandchildren. But peace of mind, and a financial leg up on life, are no small gifts, and finding the right life insurance policy is one way you can provide that important benefit for your family. Reach out to one of the USA Life professionals today for a no-obligation initial conversation about how a life insurance policy for your grandchild may be a perfect addition to the legacy you leave them, and a gift that will continue to benefit them throughout their adulthood.